A GUIDE TO STAMP DUTIES IN NIGERIA - PWC
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A Guide to Stamp Duties
in Nigeria
www.pwc.com/ng
Content 1. Overview 2. Legal Framework 3. Administration and Imposition 4. Anti-avoidanceprovisionsunder theS D A 5. Exemptions and Reliefs 6. Objections/AppealProcedures 7. Provision relating to several instruments 8. Practical matters 9. Specific agreements in the SDA 10. Appendices
1. Overview
specific amount regardless of the value of the
Stamp duty is a tax on instruments (written or transaction.
electronic documents). The Stamp Duties Act Cap.
S8 LFN 2004 (“SDA” or the Act”) can be traced to the The Finance Act 2019 (“the FA 2019”), particularly
1893 Stamp Duties and Stamp Duties Management section 52, expanded the scope of the SDA to capture
Acts passed by the British Parliament. It was enacted electronic transactions. The FA 2019 (in section 54
and came into force on 1 April 1939. which amended section 89 of the SDA) also expressly
introduced stamp duties on bank deposits and
The Act, amongst other things, imposes stamp duties transfers. This has been replaced by an Electronic
on written or electronic instruments (agreements, Money Transfer Levy (‘EMTL”) now contained in a
contracts, receipts etc.). new section 89A of the SDA (amended by section 48
Under the Act, stamp duties may be levied either at of the Finance Act, 2020 (‘the FA 2020”).
an ad valorem or flat rate depending on the type or As a result, deposit money banks and other financial
nature of the instrument. institutions receiving cash deposits of NGN 10,000
Ad valorem means “according to value” so an ad and above are required to charge a one-off NGN 50
valorem rate is based on the value of the transaction levy. The levy is to be accounted for by the person to
while fixed rate, as the name implies, means a whom the transfer or deposit is made.
A Guide to Stamp Duties in Nigeria PwC | 3
A Guide to Stamp Duties in Nigeria
Subject to the approval of the National Assembly, the Time for stamping of instruments
Minister of Finance may issue regulations on the
administration of the EMTL. There may be some Different rules apply depending on the type of
contention whether the stamp duty exemption stamp to be used, type of rate and where the
applicable to receipts given for bank deposits as document is first executed. Specific rules also apply
contained in the Schedule to the Stamp Duties Act to specific instruments. The rules are summarized
should also apply to this levy (since it is technically a as follows:
stamp duty on electronic receipts).
The revenue accruing by virtue of this levy will be • Instruments first executed in Nigeria which, by
distributed as follows: law should be stamped by adhesive stamps, are
1. 15% to the Federal Government and the Federal to be stamped on or before first execution.
Capital Territory, Abuja; and • Unstamped or insufficiently stamped instruments
2. 85% to the State Governments. may be stamped with impressed stamps, except
reduced or extended, within forty days from date
of first execution. Where such instruments are
2. Legal Framework subject to ad valorem duty, they are required to be
stamped within 30 days from first execution or first
Introduction receipt in Nigeria if executed outside Nigeria.
• Charter-parties first executed outside Nigeria
Stamp Duties are primarily governed by the SDA. without being duly stamped may be stamped with
While the main body of the Act deals with an adhesive stamp within 10 days after it is first
administration, transactions, definition of received in Nigeria and before it has been
instruments and penalties, the stamp duty rates are executed in Nigeria.
generally contained in the Schedule to the Act. • Charter-parties executed in Nigeria may be
stamped with an impressed stamp as follows:
There are Subsidiary Legislations to the Act within seven days after the first execution thereof,
including – Stamp Duties (Mortgage and on payment of the duty and a penalty of 45 kobo;
Marketable Security Duties) Regulations and the after seven days but within one month after the first
Stamp Duties (Approval for One Unit Die of One execution thereof, on payment of the duty and a
Million Naira) Notice which deal with compounding penalty of twenty naira in any other case, shall not
duties in certain transactions and approval of a be stamped with an impressed stamp.
specific die respectively.
Party responsible for stamping
Proposed review of stamp duty rates The SDA does not expressly state the party that is
obliged to ensure that a dutiable instrument is
In June 2020, an Inter-Ministerial Committee on stamped in all cases. However, for certain types of
Audit and Recovery of Back Years Stamp Duties documents (shown in Table 1 below), the SDA
was inaugurated to recover backlog of unremitted expressly mentions the party that is liable to penalty
stamp duties from banks and other companies in for not stamping. It can therefore be deduced that
the various sectors of the economy. Government is these parties would be responsible for stamping the
now considering a review of the SDA to reflect instruments.
current business reality, simplify compliance and
generate revenue for government. In situations where the law is silent, the practice is
that the party paying the consideration usually pays
the duty, and where this party does not pay, the duty
3. Administration and Imposition is borne by whomever seeks to rely on the
instrument/agreement in judicial proceedings.
In line with Section 4 of the SDA (as amended), the
Federal Inland Revenue Service (FIRS) is the only
competent authority to impose, charge and collect
duties on instruments involving a company or a
body of individuals. Section 4(2) provides that the
relevant state tax authority in a State shall collect
duties at rates imposed by the State as agreed with
the Federal Government on instruments executed
between individuals.
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A Guide to Stamp Duties in Nigeria
Table 4. Anti-avoidance provisions
under the SDA
Bond, Covenant or The Obligee, Covenantee Section 8 of the Act provides that where an instrument
Instrument of any kind or the person taking the relates to several distinct matters, stamp duties will be
whatsoever security charged as though the matters are contained in
separate instruments. The Section further states that
Conveyance on Sale Vendee or Transferee where an agreement is made for a consideration
which is chargeable with ad valorem duty and also for
Conveyances or transfers Grantor or transferor
operating as voluntary any other consideration, the instrument will be
dispositions inter-vivos charged as though each consideration is contained in
a separate instrument.
Lease Lessee
Mortgage bond, debenture, The mortgagee or obligee
5. Exemptions and Reliefs
covenant and warrant of in the case of a transfer or
attorney to confess and re-conveyance, the Exemptions
enter up judgment transferee, assignee or
disponee or the person The SDA provides certain exemptions. The
redeeming the security. exemptions are primarily contained in the Schedule.
Some examples include:
Settlement Settlor
• An unstamped bill of exchange in a set used to
prove the contents of another part of the set (duly
Penalty for late stamping stamped) which is lost or destroyed.
• Certain documents in a conveyance on sale such
Failure to pay stamp duties to the appropriate as where ad valorem duty has been paid on a
authority within the time stipulated in the SDA is an decree or order conveying interest in property to a
offence that could attract penalty and interest. purchaser or any other person acting on his behalf
or by his direction, any conveyance based on such
Penalty Interest a decree or order shall be exempt from ad valorem
duty.
Where stamp NGN20 • Certain documents in respect of a lease such as
duty is not more documents providing for penal rent or increased
than NGN20 rent in the nature of a penal rent.
Where NGN20 10% interest • For the duty payable on a loan capital by a
stamp duty per annum from the Company, Corporation or body of persons, the SDA
is more than day of first execution provides that before the issue of such a loan capital,
NGN20 up to the unpaid duty. a statement of the amount to be secured is to be
After 10 years, once submitted to the CAC and where it is shown to the
cumulative interest is satisfaction of the CAC that stamp duty has been
100% of the unpaid paid in respect of a mortgage or marketable security
duty, no further on any trust deed or other document securing a
interest is charged. loan capital, such a loan capital shall be exempt
from stamp duty.
The SDA imposes other penalties for other acts of Reliefs
non-compliance.
For instruments executed by companies, there is a • The SDA provides duty relief on certain documents
risk that the FIRS may apply the penalty provision in in reconstructions and amalgamations such as a
the Federal Inland Revenue Service Establishment conveyance or transfer of sale assigning debts
Act, which is a 10% penalty and interest at the whether secured or unsecured of the existing
prevailing CBN minimum rediscount rate plus a company or documents vesting or relating to the
spread as announced by the Finance Minister vesting of the undertaking or shares in the
(currently 5%). transferee Company. However this relief does not
A Guide to Stamp Duties in Nigeria PwC | 5
A Guide to Stamp Duties in Nigeria
• apply to debts (apart from debts due to banks or Where several instruments are executed in respect of
trade creditors) incurred less than two years before the same property and the ad valorem duty
the proper time for making a claim of exemption. chargeable exceeds one naira, only one of the
Furthermore, an instrument made for the purpose instruments will be charged. In practice, the duty
of transfer as stated above must be executed would be paid in respect of the instrument with the
within 12 months of the date of the incorporation of highest duty and the other instruments would be
the transferee company. In addition, the document stamped at a nominal rate.
made for effecting the conveyance or transfer
consequent to an agreement, must be made within
the same twelve months of the filing of the same
8. Practical Matters
agreement or particulars of it with the CAC.
Mode of stamping of instruments
• Section 105 of the SDA provides duty relief in the
case of transfer of property between associated
Dutiable instruments can be stamped in the
companies. For the purpose of the Act, a
following ways:
company is deemed to be associated with the
• Employing a die impressed on an instrument;
other essentially if it is the beneficial owner of at
least 90 per cent direct or indirect interest in the • Affixing printed adhesive stamps issued by the
other. Nigerian Postal Service;
• The SDA provides a reduction in stamp duty by 5 • Direct electronic printing or impression on the
kobo on every twenty naira for a short-term instrument;
marketable security with a term not exceeding 3 • Electronic tagging;
years. However, where such a marketable • Issuance of stamp duties certificate, or
security is assigned, transferred or negotiated • Any other form of acknowledgement of payment for
after the date on which the amount to be secured Stamp duties adopted by the FIRS
is to be paid off, stamp duty will be charged at full
rate.
Compliance Procedures
• The SDA also provides for an incentive for
Companies in the form of reimbursement of duty
The Federal Inland Revenue Service operates a portal
paid on a loan capital wholly or partially applied for
(www.stampduty.gov.ng) which is a platform for the
the conversion or consolidation of existing loan
collection of stamp duties. All chargeable persons
capital.
including individuals, institutions, private organisations,
and banks are expected to use the portal for payment
of their stamp duties.
6. Objections/Appeal Procedures
Use of instruments as evidence in Civil
A person who is dissatisfied with the assessment of Proceedings
stamp duties may, within 21 days after the date of the
assessment, and on payment of duty, appeal against The legal effect of a document which is not duly
the assessment to the High Court of the State in stamped in accordance with the provisions of the SDA
which the assessment was made. is that it will not be admissible in evidence in a Court of
Law. This excludes documents given as evidence in
This position is not consistent with the Federal Inland criminal proceedings and all just exceptions as
Revenue Service (Establishment) Act which requires stated in the SDA.
appeals to be filed at the Tax Appeal Tribunal. In
view of this, appeals may be filed at the relevant zone
of the Tax Appeal Tribunal. This is based on section
68(2) of the FIRSEA which requires that the FIRSEA
would prevail in case of inconsistency in other tax
laws.
7. Provision relating to several
instruments
Several instruments executed in settlement of
the same property
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A Guide to Stamp Duties in Nigeria
9. Some specific agreements in 31 and 32 of the SDA.
the SDA Bill of Lading
Assignment A bill of lading is a document issued by the carrier or
shippers agent acknowledging that specified goods
An assignment is used to transfer intangible rights or have been received on board. The document
incorporeal property such as debts, shares and other indicates the receipt of goods for shipment and
interest in intangible property. Interest in land and evidences a valid contract of carriage between the
conveyance of intangibles are transferred by an carrier and consignor.
assignment of rights over the property or intangibles.
The stamp duty rates for a conveyance and an Bill of Sale
assignment of the same type of property are the same
under the SDA. The terms could be used A bill of sale is a legal document made by a vendor
interchangeably depending on the nature of property to a buyer. The document shows the specific date,
being transferred. locality, and the sum of money or other consideration
received by the vendor from the buyer for the sale of
Assignment by way of security a particular item or personal property which the
vendor lawfully had in his possession.
An assignment by way of security is an assignment for
the purpose of securing a loan. It is not an absolute Charter Party
assignment and the assignor retains the right to a re-
assignment of the property after the loan has been A charter party is defined by Section 46 of the SDA
repaid. The assignment by way of security is different to include any agreement or contract for the charter
from a mortgage although for the same purpose – to of any ship or vessel or any memorandum, letter, or
secure a loan. An assignment is used to transfer other writing between the captain, master or owner
intangibles or a chose-in-action. A chose-in-action is a of any ship or vessel, and any other person for or
personal right to a property that can only be claimed relating to the freight or conveyance of any money,
or enforced by legal action as against one that can be goods, or effects on board of a ship or vessel.
claimed by taking physical possession. A property
right in an intangible is a chose in action. An Contract Notes
assignment by way of security can be used to create a
security over any intangible or chose-in action. Section 49 of the SDA defines a contract note as a
Security created over shares, insurance policies, note by an agent to his principal who deals in stock
intellectual property rights etc. are created using an or marketable securities and which advises the
assignment by way of security. principal, a vendor or purchaser of the sale or
purchase of any stock or marketable security. Where
Appraisements a contract note is in respect of a transaction of sale
and purchase of stock or marketable security, the
This refers to the document that sets out the valuation contract note will be charged with the duty applicable
of a property or an estate. It is prepared by a person to the purchase/sale of the relevant marketable
referred to as an appraiser as stated under sections security.
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A Guide to Stamp Duties in Nigeria
Conveyance on sale Conveyance in consideration of a debt
Section 52 defines a conveyance on sale as an Section 56 of the SDA states that where a property is
instrument or order of the court whereby a property or conveyed in full or part settlement of a debt, the value
interest in property is transferred to or vested in a of the property will be considered as the total or
purchaser or any other person on behalf of the partial debt amount as the case may be. Therefore,
purchaser. The instrument that transfers landed Stamp duty will be charged at an ad valorem rate on
property is usually referred to as a conveyance or an the value of the property irrespective of any charge or
assignment. In Nigeria, the assignment or transfer of encumbrance on it. This conveyance is stamped as
the entire interest that a person has in a property is an assignment or conveyance by way of security. The
described as a conveyance or an assignment. provisions dealing with mortgage would also apply
depending on the nature of the property.
Conveyance of property other than a sale or
mortgage Debenture for securing repayment of money or
transfer of stock
In accordance with section 65 of the SDA, an
instrument, decree or order of the court by which A debenture is a term used to describe the medium to
property is transferred or vested in any person not long-term debt instrument used by companies to
being a sale or mortgage will be charged with duty as borrow money. Thus, a debenture is like a certificate
a conveyance or transfer of property. This could arise of loan or a loan bond evidencing the fact that the
where property is transferred under a Will. Property company is liable to pay a specified amount with
transferred under a trust to a new trustee or as a interest. The money raised by the debentures
result of the retirement of an existing trustee would becomes a part of the company's capital structure, but
fall within this category. it does not become share capital. A secured
debenture is one that is a loan secured by a charge
(fixed or floating) over the company's assets.
Conveyance or Transfer by way of security
For stamp duty purposes, a debenture instrument is
This is also a mortgage in satisfaction of a debt, given the same treatment as a transfer by way of
debenture or loan obligation. A Mortgage of property security i.e. a mortgage or conveyance of marketable
or land is a transfer or conveyance by way of security. security. The consideration for stamp duties is the
Note that where the property can only be transferred security created to secure the loan.
by an assignment such as insurance policies or
shares, the provisions on assignment by way of Hire Purchase Agreement
security would apply. A document transferring land as
security for a debt is referred to as an assignment. Section 30 of the SDA defines a hire purchase
agreement as one in which goods are supplied on
According to section 54 of the SDA, where there is a hire in consideration for periodical payments whereby
conveyance on sale, and the consideration of the the goods become the property of the person to
agreement is payable periodically for a definite period whom the supply is made. Hire purchase agreement
of not more than 20 years, stamp duty will be charged shall be charged with duty as an Agreement and if
at an ad valorem rate on the total amount of the under seal as a deed, as the case requires.
consideration. However, if the consideration is
payable periodically for a definite period of more than Leases
20 years or for an indefinite period not terminable with
A lease is a contract by which the rightful possessor
life, an ad valorem stamp duty rate will be charged on of real property conveys the right to use and occupy
the amount of consideration which is payable within the property in exchange for consideration.
the first 20 years after the date of the instrument.
Furthermore, where the consideration is payable However, an agreement for a lease denotes a
periodically within an indefinite period terminable with contract between a lessor and a lessee to enter into a
life, the stamp duty charge will be on the lease agreement. While a lease agreement sets out
consideration payable during the period of 12 years the terms (such as duration and consideration) of the
following the date of the instrument. lease entered into between the parties. According to
section 68 of the Act, an agreement for a lease will be
charged as if it were an actual lease made for a term
and consideration.
PwC | 8 A Guide to Stamp Duties in NigeriaA Guide to Stamp Duties in Nigeria
Loan Capital The mortgage of stocks such as shares is dealt with
under section 29 and states that any instrument
Loan capital is defined as any debenture stock, other under hand only (other than a promissory note or bill
stock or funded debt or any capital raised by any of exchange) accompanied by a deposit of share
company or corporation in Nigeria. This refers to warrant or share certificate to bearer or foreign share
borrowed money but does not include an overdraft certificate or any security for money transferable by
raised for a period not exceeding 12 months. Loan delivery, by way of security for any loan would be
capital is charged at the rate of 25k for every N200. charged with duty. In practice, security over shares
Loan capital would be similar to a shareholder loan of a listed company is secured by placing a lien on
that is granted for a long or an indefinite period. A the shares because the shares are domiciled at the
debenture issued to a company would not fall under Central Securities Clearing System (CSCS). Security
this category but rather as a transfer by way of over shares of a private company can be created by
security. way of assignment of security.
Marketable Security A mortgage of intangibles is always done by an
assignment even though it may be referred to as a
The Act defines a marketable security as a security mortgage. The duties that apply to a mortgage would
that is capable of being sold in any stock market. also apply to an assignment by way of security.
Under section 76, marketable securities include
marketable security made or issued by or on behalf of Share Capital
any Nigerian company or individual, foreign
government or corporation and offered for Section 100 of the Act provides that the statement of
subscription in Nigeria. This includes shares or bonds nominal share capital of a limited liability company
issued by a private or public company. A marketable will be charged with ad valorem duty. The statement
security also includes bonds issued by the Federal of increase in the registered capital is required to be
Government. Shares and bonds are marketable stamped within 15 days of passing the resolution for
securities. an increase.
Mortgage
A mortgage is a security interest created over
property by a debtor in favour of a creditor as security
for a debt, on the condition that it shall be returned on
payment of the debt within a certain period. Mortgage
of land and other real property is provided for under
section 80 of the SDA. The SDA defines a mortgage
as follows –
• A security by way of mortgage for the payment of
any definite and certain sum due or owed or for the
payment of money to be lent, advanced or paid
subsequently;
• A conveyance of property in trust to be sold and
intended as security which is redeemable before
sale or disposal;
• A defeasance, letter of reversion, declaration or
other deed or writing intended as a security and
which qualifies a conveyance or makes a
conveyance, disposition of land, estate or property
redeemable;
• Any deed operating as a mortgage.
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10. Appendices
1. Frequently Asked Questions
S/N Question Answer
Stamp duties are taxes paid on written and electronic instruments or documents relating to an
1 What are stamp duties? act performed or required to be performed in Nigeria.
Stamp Duties is an item on the Exclusive Legislative List of the Constitution of the Federal
2 Who can legislate on stamp duties? Republic of Nigeria. However, item 7 on the Concurrent Legislative List allows the National
Assembly to delegate the functions of collecting stamp duties to state government.
What is the statutory law governing
3 stamp duties in Nigeria? The Stamp Duties Act (“SDA”), Cap S8, Laws of the Federation of Nigeria 2004 as amended.
All instruments relating to transactions to be performed in Nigeria (whether or not executed in
Nigeria) are subject to stamp duty except such instruments as specifically exempted under the
What instruments attract
4 SDA.
stamp duties?
The list of exempt instruments are specified in the Schedule to the SDA.
The Federal Inland Revenue Service ("FIRS") is the competent authority to collect duties
upon instruments relating to transactions or matters executed between corporate bodies
What agency is responsible or between a corporate body and an individual, group or body of individuals.
5
for collecting stamp duties?
The relevant state tax authorities are responsible for the collection of stamp duties in
respect of instruments executed between individuals.
How do I determine the Stamp duties may be levied at a fixed or ad valorem rate as provided in the SDA. The
6
applicable stamp duties rate? schedule to the Act provides a list of dutiable documents and the applicable stamp duty rates.
S5(1) of the SDA states that “All duties for the time being chargeable under the provisions of
this Act upon any instruments shall be paid and denoted according to the provisions in this Act,
and, except where express provision is made to the contrary in this Act or by the regulations
made thereunder, are to be denoted by impressed stamps only.”
7 How is stamp duty denoted?
S5(2) says, “Where the duty may be denoted by adhesive stamps, postage stamps may,
subject to the provisions of any Act or regulation, be used for the purpose.”
In simple terms, stamp duty may be denoted either by an impressed stamp or adhesive
stamp. In the case of adhesive stamp, postage stamp may be used.
There are financial penalties (on conviction) under the SDA. The FIRS may choose to apply
penalties under the FIRS Establishment Act which can be as high as 10% penalty plus interest
8 What happens if I don’t stamp? at CBN MPR and imprisonment of up to 3 years. Also, in civil proceedings unstamped
documents are not admissible as evidence.
The National Assembly or the State Houses of Assembly may increase, reduce, add
Who can alter the rate of new duties or repeal chargeable duty (as it relates to matters within their legislative competence)
9
stamp duties? by resolution. Any other provision of the SDA (other than the Schedule) can only be amended by
an Amendment passed by the National Assembly and assented to by the President.
High value agreements with ad valorem stamp duty rate such as lease agreements. Stamp
10 What are the high risk areas?
duties on many low value agreements can also result in a high cumulative value.
Generally, it is not clear from the law but in some cases the SDA states who will be liable to
pay the penalty for failure to stamp so we can deduce that such party has the obligation to
11 Who has the obligation to stamp? stamp. In practice, the party who makes the payment under an agreement is usually expected
to pay the stamp duty.
Different rules apply depending on the type of stamp to be used, type of rate and
where the document is first executed.
12 When is stamp duty payable?
Generally, a document that is first executed in Nigeria should be stamped on or before the
first execution and in any case within 30 (for ad-valorem duties) or 40 days (for fixed
duties) from date of execution.
PwC | 10 A Guide to Stamp Duties in NigeriaA Guide to Stamp Duties in Nigeria
2. International Perspectives
Country Stamp Duty
Benin Stamp Duty exists as a fixed rate on the stamping of business contracts and other instruments. Ad
valorem charges exist when there is an instrument stating an increase in capital of a company by charging
a fixed rate of XOF 6,000 (6,000 West African Francs) and on transfer of Land and buildings at rates of
1% for sho-rtterm leases or hires, 5% for long term leases or sales of moveable property and 8% for sale
of a business and at a fixed fee of XOF 6,000 for shares or mergers, capital increases and shares
transfers that do not include a company’s takeover. Previously the registration of service contracts was
free, now a set rate of 1% of the price.
Burkina Faso In Burkina Faso, stamp duty is applied on administrative acts. This is applied at a fixed or variable rate
depending on the nature of the act. Stamp duty on contracts is levied at XOF 400 per page of the
document. Several types of transactions are exempt from stamp duty in Burkina Faso. Tax in the Burkina
Faso is administered by the Direction Générale des Imports.
Stamp Duty in Kenya exists at nominal or ad valorem rates on some financial instruments and transactions.
Kenya On a subsequent increase in authorized share capital, a 1% stamp duty is levied. Also, a levy of 4% exists
on immovable property (2% if in the rural areas). Transfer of shares and other securities attract a levy of 1%.
However, an exemption applies if the shares/securities are listed in the Nairobi Securities Exchange.
The Gambia Stamp duty is levied on juristic acts resulting in a flow of wealth between the parties to a legal transaction.
Thus, stamp duty tax is applicable, inter alia, to acts through which transactions on real estate or financial
obligations are documented. Rates vary depending on the type of transaction. Tax is administered by the
Gambia Revenue Authority (GRA).
South Africa Stamp Duty in South Africa was repealed on the 1 April 2009 in an effort to reduce the administrative
burden on taxpayers and to simplify the tax system. Prior to this date, a stamp duty of 0.5% was set on
property lease. A Transfer Duty payable on Properties was introduced as a replacement.
United Prior to COVID-19, Stamp Duty (Stamp Duty Land Tax or SDLT as it is called) was charged at the following
Kingdom rates; Up to £125,000 at 0%, from £125,000 to £250,000 at 2%, from £250,001 to £925,000 at 5%, from
£925,001 to £1,500,000 and from above £1,500,000 at 12%.
However, post COVID-19, a temporary Stamp Duty holiday has been granted from 8 July 2020 to 31 March
2021. Purchases of dwelling costing up to £500,000 are exempted from SDLT unless the purchase is an
additional dwelling. Purchases exceeding this threshold will only be taxed on the additional amounts above
the threshold. Also, the additional dwellings will be taxed at only 3% on the first £500,000 with tapered
charges for the consideration above that level.
United Stamp duty is chargeable at varying rates on transactional documents. However only states impose
States of stamp duty charges in the USA.
America
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3. Dutiable instruments and applicable rates in the SDA
S/N Agreement Type Stamp Duty Rate
1 Admission as a barrister or solicitor Flat N50
2 Affidavit, Affirmation, and Statutory Declaration Flat 45k
3 Agreement under hand Flat 15k
4 Agreement under seal Flat N3
5 Appointment of trustee Flat 50k
6 Appraisement or valuation of property Ad valorem 1.50%
7 Assignment by way of security Ad valorem 0.38%
8 Assignment upon a sale or otherwise Ad valorem 1.50%
9 Bill of sale Ad valorem 1.50%
10 Bond Ad valorem 0.38%
11 Charter party Flat 9k
Contract (Except other contracts specifically charged with
12 stamp duty in the SDA) Flat 15k
13 Contract Note Ad valorem 0.08%
14 Conveyance or transfer by way of security Ad valorem 0.375%
15 Conveyance or transfer on sale of any property Ad valorem 1.50%
16 Debenture Ad valorem 0.375%
17 Declaration of any use of trust Flat N3
18 Deed of any kind not described in the schedule to the Act Flat N3
Documents, agreements from ministries, parastatals and
19 agencies of government at all levels (Letter from the legal N/A Duty not applicable
adviser of the ministry or parastatals required)
0.78% if lease period is not
more than 7 years
3% if lease period is between 7
20 Lease Ad valorem
and 21 years
6% if lease period is over 21
years
21 Loan capital Ad valorem 0.125%
22 Marketable securities Ad valorem 2.25%
23 Mortgage Ad valorem 0.38%
24 Increase in share capital Ad valorem 0.75%
25 Insurance Ad valorem 0.08%
26 Power of attorney Flat 3k
PwC | 12 A Guide to Stamp Duties in NigeriaContact us
For a discussion, please contact any member of theTax team below or your usual contact within PwC
Nigeria:
Taiwo Oyedele
taiwo.oyedele@pwc.com
+234 1 271 1700 Ext: 50002
Kenneth Erikume
kenneth.y.erikume@pwc.com
+234 1 271 1700 Ext: 50004
Seun Ajayi
seun.ajayi@pwc.com
+2341 2711700 Ext: 50007
Folajimi Akinla
folajimi.akinla@pwc.com
+2341 2711700 Ext: 52008
Tobi Adeyoyin
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